MAJOR /NQ $QQQ Level To Pay Attention To | 2 Put Entries I Opened

11/27/24 •

Summaries by topic

• English

The NASDAQ and QQQ futures are approaching key resistance levels, with the 21,500 level for the NASDAQ and 510 for QQQ being crucial for further upward movement. The speaker expresses concern about the weakness in the semiconductor sector (SMH), and suggests that a potential decline in the NASDAQ could be imminent if these levels are not surpassed, possibly leading to a retest of lower levels. The speaker also discusses potential short trades on Tesla and Netflix, based on their recent price action and the possibility of a market correction.

NASDAQ Resistance Levels

• 00:01:30 The speaker highlights the 21,500 level for the NASDAQ futures as a key resistance level. The market's failure to break above this level, along with a rejection at the same level the previous day, is concerning. The speaker believes that a retest of this level could signal further downward pressure, particularly if the semiconductor sector (SMH) doesn't strengthen.

QQQ Resistance Levels

• 00:05:48 The speaker notes that the QQQ shares a similar resistance level to the NASDAQ, with the 510 level being a key area to watch. If the QQQ fails to surpass this level, it may lead to a lower high and indicate a potential decline. However, the speaker clarifies that the QQQ is still in an uptrend in the short term.

Semiconductor Weakness

• 00:04:33 The semiconductor sector (SMH) has been a significant factor in the NASDAQ's performance. Its failure to maintain upward momentum and recent rejection of a higher high, while still holding the 200-day moving average, suggests potential weakness. This weakness is a significant concern for the speaker, as strong semiconductor performance is vital for a confident NASDAQ breakout.

Tesla Short Trade

• 00:07:05 The speaker describes a short trade he entered on Tesla at the 348 level, based on a quadruple top pattern and recent price failures. He believes there are trapped bulls and a potential for a reversal to the 322 level, making this a favorable risk-reward trade. He explains the trade's stop-loss and potential target levels.

Netflix Short Trade

• 00:10:00 The speaker discusses a potential short trade on Netflix, focused on the 877-875 area. The speaker sees a recent failure to make a new high and a potential rejection at this level. He believes a short trade here, if successful, could lead to retracements down to 860, 848-850, or even 840, if the NASDAQ weakness continues.